Gains in US stock futures moderated on Thursday as market participants processed the recent earnings reports from major technology companies ahead of Apple’s upcoming quarterly announcement. The tech-heavy Nasdaq 100 and the S&P 500 saw their futures rise by approximately 0.2%, while the Dow Jones Industrial Average futures hovered just above the flatline, reflecting a pullback from a premarket surge that followed a subdued performance on Wednesday.
The S&P 500 is eyeing another breakthrough above the 7,000 mark, particularly following a notable surge in Meta’s shares, which increased by over 8% in premarket trading. This jump was fueled by a robust quarterly revenue outlook and strategic plans by Meta to invest up to $135 billion in its data center expansion, part of its larger initiative to lead in artificial intelligence.
Despite the enthusiasm surrounding AI developments, Microsoft’s stock took a hit, dipping nearly 7% after the tech giant reported higher-than-expected capital spending, which failed to offset concerns about a slowdown in its quarterly cloud sales growth. In contrast, Tesla’s stock rose more than 2% after the company announced a strategic pivot from electric vehicles to robotics, alongside a quarterly earnings beat that helped to overshadow its first annual revenue decline.
Investors are now preparing for Apple’s quarterly earnings report, which is eagerly awaited following these developments in the tech industry. Meanwhile, the escalation of tensions between the US and Iran, marked by President Trump’s stern warning to Iran to rapidly finalize a nuclear agreement or face military action, contributed to a rally in gold and oil prices. Gold briefly surpassed $5,500 an ounce as the dollar weakened, reflecting a surge in demand for safe-haven assets. Crude oil futures also climbed, supported by a buildup of US naval forces in the Middle East and concerns surrounding the geopolitical landscape.
Additionally, Wall Street is processing the Federal Reserve’s recent monetary policy decision to hold interest rates steady, keeping an eye on incoming economic data including weekly jobless claims, durable goods orders, and wholesale inventory figures, which could influence future policy decisions. Current market expectations suggest two quarter-point rate cuts may occur by the end of the year, although any easing may not materialize until after Jerome Powell’s term concludes in May. Speculation is also growing around Trump’s imminent announcement regarding his pick for the next Fed chair.
In the media sector, Comcast reported losing broadband customers in its fourth-quarter earnings, falling short of analysts’ expectations due to competitive pressures. Meanwhile, Las Vegas Sands stock dropped by up to 10% in premarket trading after a disappointing earnings report, while Royal Caribbean’s stock gained 6% following earnings guidance that exceeded Wall Street estimates. Whirlpool’s shares fell by 10% after the company experienced an unexpected sales decline.
SAP shares declined 15% following disappointing guidance and a cloud backlog highlighted in its earnings report, indicating that the rollout of several significant deals is taking longer than anticipated. Conversely, IBM shares surged 8% as the company reported a 12% revenue growth driven by its software segment, significantly outpacing analysts’ forecasts.
Overall, the market remains sensitive to a confluence of earnings reports, geopolitical concerns, and macroeconomic indicators as investors navigate a complex landscape.
